August 22, 2017

Ian Woodman Offers Tax Tips: How You May Be Overpaying Taxes

Ian Woodman

Ian Woodman

According to Ian Woodman, a number of past studies estimate that many taxpayers overpay taxes. This, according to Ian Woodman, was largely attributed to the number of taxpayers who understate charitable contributions.

Did you tithe or donate clothing to Goodwill? Ian Woodman’s staff at Instant Tax Solutions can help you claim these deductions and avoid paying too much to the IRS. Ian Woodman has found some people reject claiming these deductions for a variety of reasons. One of these reasons, Ian Woodman says, is that it is too much trouble to get a receipt and itemize. Another, according to Ian Woodman, is that they feel the donation is no longer charitable if they get a tax credit for it.

To cure this, Ian Woodman encourages his clients to reframe their thinking. Claiming contributions on a tax return isn’t the same as being handed cash for that contribution, Ian Woodman states. All you are doing is reducing the portion of your annual income that is taxed. As Ian Woodman explains it, say you made $50,000 last year but gave $5,000 to your church. By claiming that $5,000, Ian Woodman states, you are setting aside that $5,000 to keep the IRS from taxing it. So your total taxed income would be $45,000—the amount of your salary you didn’t give to the church.

Another problem with item donations, aside from the extra effort in getting a receipt, is itemizing donations, Ian Woodman adds. The IRS has cracked down on item donations, requiring taxpayers to now claim fair market value for each item they donate, according to Ian Woodman. Goodwill has a fair market value calculator on its site, but taxpayers still have to estimate between such ranges as two dollars to twelve dollars for a woman’s blouse. Taxpayers are told to use garage sale prices, but this can be vague, according to Ian Woodman. As Ian Woodman has found, taxpayers are confused as to what is fair for various items, and many end up undervaluing items just to be safe.

By consulting a tax professional like the ones at Instant Tax Solutions, notes Woodman, taxpayers can make sure they understand the deductions to which they are entitled. Ian Woodman says that the team of professionals at Instant Tax Solutions can explain to you the best way to value your donations and make sure you have the necessary documentation in order in case you are ever audited.

For more information, contact Instant Tax Solutions by visiting www.instanttaxsolutions.com

About

Ian Woodman is a Post Falls, Idaho, businessman with a diverse range of professional interests and experience. He is currently the co-owner of Instant Tax Solutions, a tax debt resolution firm established in 2008. Ian Woodman co-founded the company with Byron Pedersen, based upon the belief that taxpayers deserve fair treatment by their legal representation and need honest, unbiased information about IRS policy and procedure. Since starting his first successful business venture at just 25 years old, Ian Woodman has achieved success through hard work and by treating people with respect.

Comments

  1. Liza Chua says:

    Your article helped a lot of people and I am one of them. I hope you keep on writing about taxes because there are people out there that are having hard time resolving their tax problems with the IRS. Over paying taxes is also one instance that the people do not really understand how taxes works or how much should be paid. You have my gratitude, Mr. Ian Woodman.

    • Ian Woodman says:

      As a tax expert, it is my job to inform you of the several instances about why people over paying their taxes. Thank you so much, Liza for taking time reading my article. – Ian Woodman

  2. Marie Farley says:

    As a taxpayer, I just paid my taxes without knowing anything about how I could have reduced my payments. I am bummed that I read this article AFTER the fact. Thank you, Ian Woodman for caring and giving up some of your busy time writing the article about taxes. It can useful when tax season comes.

  3. Chris Golder says:

    Mr. Ian Woodman, your article helped me a lot – knowing some of the facts about taxes. I hope you can write more articles concerning the different issues about taxes. It is easier now to understand how taxes work. Thank you.

    • Ian Woodman says:

      Chris, thank you for the feedback and writing the different tax issues are also my plan to do so that it could be beneficial to those who are having a hard time resolving their tax problem. – Ian Woodman

  4. Jodany Park says:

    Taxes can be very complicated for me to understand. I definitely don’t know if I’m paying too much to the IRS. I am thankful that you made an article about taxes. Thanks, Mr. Ian Woodman.

    • Ian Woodman says:

      Hello, Jodany! Thank you for reading my article and I hope you can use it to your advantage. – Ian Woodman

  5. Ashley Michaels says:

    Thank you for the information regarding how to reduce our tax payments, Ian Woodman. It is a huge help knowing that you are helping us especially in today’s economy. I will be able to breathe easy now because I have you as my expert in taxes.

    • Ian Woodman says:

      It is my pleasure to help you, Ashley. You can contact the office anytime you need help with your taxes. – Ian Woodman

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